Dutch regulator orders Polymarket to cease operations amid hefty fines over unlicensed prediction trading platform

The Dutch gambling authority has mandated Polymarket to stop serving Dutch users, citing breaches of gambling laws and warning of substantial fines, highlighting growing regulatory scrutiny of crypto-based prediction platforms.

The Dutch gambling regulator Kansspelautoriteit has ordered Polymarket to stop serving customers in the Netherlands, warning the U.S.-based prediction platform that it faces crippling fines if it does not comply. The order, issued against Adventure One QSS Inc., carries a penalty regime of €420,000 per week up to a ceiling of €840,000. (Sources: NLTimes, GamingIntelligence)

KSA said its investigators found Polymarket allowed users with Dutch IP addresses to register, deposit euros and place wagers on outcome-based contracts, including questions tied to Dutch politics, and that those activities fall within the statutory definition of games of chance under the Betting and Gaming Act. According to the regulator, Dutch law bars such offers unless a licence is held. (Sources: YogoNet, NLTimes)

Polymarket has argued that it operates as a prediction market or a financial trading venue rather than a gambling site. The KSA rejected that contention, saying payouts hinge on uncertain real-world events and therefore meet the chance-versus-skill test used to determine regulatory scope. The authority concluded the platform’s features and payment flows made it accessible to the Dutch market. (Sources: QuantVPS, ValueTheMarkets)

The regulator’s enforcement followed a series of on-site checks and tests in 2025 and early 2026 that, it says, demonstrated unimpeded access and functioning payment rails from the Netherlands; one probe involved a supervisor depositing funds and placing small wagers to confirm activity. KSA also highlighted indicators such as euro-denominated deposits, routing through a Dutch bank and Dutch-language support as evidence of market targeting. (Sources: YogoNet, NLTimes)

KSA’s director of licensing and supervision, Ella Seijsener, stressed the social risks these products pose and reiterated the authority’s position: “Anyone without a licence has no business in our market. This also applies to these new gambling platforms.” The regulator also warned of possible additional, turnover-related fines depending on the duration of non-compliance. (Sources: GamingIntelligence, YogoNet)

Following the order, Dutch access to transactional features on Polymarket has been blocked so users can only view the site without participating, the regulator said. KSA added it will continue to monitor the situation and noted that even licensed operators in the Netherlands may not offer bets on non-sporting events such as elections. (Sources: NLTimes, YogoNet)

The action illustrates growing international scrutiny of crypto-anchored prediction markets and the legal challenges they face when regulators apply established gambling frameworks to novel platforms. Industry observers say the Dutch decision may influence enforcement approaches elsewhere as authorities weigh public-interest concerns, market access and the limits of existing licensing regimes. (Sources: ValueTheMarkets, QuantVPS)

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Source: Noah Wire Services